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#1: 1.25% Jul-27

GILT AUCTION PREVIEW
  • This morning's first auction will see GBP2.75bln of the 1.25% Jul-27 gilt on offer.
  • This will be the fifth auction of the gilt so far this fiscal year.
  • Demand has remained strong around the 7-year point of the curve with the last auction of the 1.25% Jul-27 gilt seeing a bid-to-cover of 2.61x and a tail of 0.2bp. There have since been two auction of the 0.125% Jan-28 gilt which have also seen strong demand with bid-to-covers of 3.22x and 2.67x and tail of 0.1bp and 0.2bp respectively.
  • We expect another strong auction today in what will be the last 7-year auction of the calendar year.
  • RESULTS: Results will be available shortly after the auction closes at 10:00GMT with a further GBP687.5mln nominal available to successful bidders through the PAOF.

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